Two weeks ago, the price zone of 1.2400-1.2415 (reversal pattern neckline) was breached to the upside allowing further bullish advancement to occur towards 1.2800 then 1.3000 where the GBP/USD looks overbought outside the depicted bullish channel.
This week, the GBP/USD pair is failing to achieve a successful bullish breakout above the depicted SUPPLY-zone (1.2980-1.3000) which corresponds to a previous Prominent TOP that goes back to May 2019.
Moreover, the depicted ascending wedge has been broken-down indicating a high probability of bearish reversal around the current price levels 1.2950-1.2970.
That's why, a quick bearish movement is expected to originate around the current price levels down to 1.2780 (Key-Level) where price action should be assessed again.
Quick Bearish breakout below 1.2870 is needed to bring further bearish decline towards 1.2780 where an Intraday Key-Level comes to meet the pair.
Trade Recommendations:
Intraday traders are advised to have a valid SELL entry around the current price levels (1.2950-1.2970).
T/P level to be placed around 1.2870 then 1.2780 while S/L should be placed above 1.3010.
